Wal-Mart, Amazon rivalry spreads to forklifts

The rivalry between Wal-Mart Stores Inc. (WMT) and Amazon.com Inc. (AMZN) has reached down to the warehouse forklift.

Wal-Mart has agreed to invest in Plug Power Inc. and buy more of its fuel-cell-powered machines, a move that mirrors a deal struck by Amazon earlier this year.

“Discussion was going on simultaneously” with the two retailers starting late last year, said Plug Power Chief Executive Andy Marsh.

Under the deal announced Friday, Wal-Mart will roll out Plug Power’s forklifts and warehouse vehicles to 10 distribution centers this year, an investment the manufacturer valued at $80 million. Wal-Mart is already Plug Power’s biggest customer, with 5,500 of the company’s units in 22 warehouses.

In April, Amazon agreed to spend $70 million on Plug Power’s vehicles and received rights to buy as many as 55.3 million shares in the company, a 19% stake.

Wal-Mart will receive warrants to purchase the exact same number of shares, though its initial price will be higher than Amazon’s because Plug Power’s stock price has risen 63% since announcing its Amazon deal. Wal-Mart’s potential stake is 17%, Mr. Marsh said.